UK Launches Probe of AI Models as Another Regulator Gets Wary of Risks

UK’s CMA (Competition and Markets Authority) has launched an initial review of AI models as regulators globally get wary of the risks associated with generative AI.

The technology has massive opportunities too – as the CMA acknowledged in its release by saying generative AI models “have the potential to transform much of what people and businesses do.”

CMA said that the UK government has asked it “to think about how the innovative development and deployment of AI can be supported against five overarching principles: safety, security and robustness; appropriate transparency and explainability; fairness; accountability and governance; and contestability and redress.”

CMA said that its initial review would examine three aspects which are

• Examining how markets and use for foundation models could evolve
• Exploring the opportunities and risks with respect to competition and consumer protection
• Coming up with guidelines to protect consumers and competition

Notably, CMA’s AI review is coming at a time when there is a clamor in the developed world to regulate generative AI.

AI regulations are a burning issue for leading economies and last week digital ministers of G7 nations agreed to adopt a “risk-based” regulation while preserving an open and enabling environment.

The European Commission has been working on the AI Act for around two years but a sense of urgency now seems to be creeping in – amid the growing popularity – and the multiple concerns associated with generative AI.

UK’s CMA Launches a Probe into Generative AI

Coming back to the UK probe, Sarah Cardell, the CEO of the CMA said in her statement that AI is “a technology developing at speed and has the potential to transform the way businesses compete as well as drive substantial economic growth.”

She however cautioned “It’s crucial that the potential benefits of this transformative technology are readily accessible to UK businesses and consumers while people remain protected from issues like false or misleading information.”

Notably, AI has caught the attention of tech companies as well as users – with ChatGPT using 100 million users in just about two months.

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However, the rapid growth has left regulators scrambling to regulate the technology. In her comments, Cardell said, “Our goal is to help this new, rapidly scaling technology develop in ways that ensure open, competitive markets and effective consumer protection.”

The US is Also Looking at Regulating Artificial Intelligence

The US is also looking to regulate AI and the White House is hosting CEOs of Microsoft and Alphabet today to discuss the risks associated with AI.

Microsoft has committed billions of dollars to ChatGPT parent OpenAI and sees the partnership driving its growth in the long term.

Microsoft surged after it released its earnings for the March quarter even as many other tech names including Netflix, Alphabet, and Amazon fell after the earnings release.

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Coming back to calls for AI regulations, the calls are only going to increase in the future as more reports of misuse of the technology crop up. FTC chair Lina Khan already warned that ChatGPT-like platforms would turbocharge fraud.

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